Business

Navigating Business Resilience: The 2024 FM Global Resilience Index

JOHNSTON, R.I., March 21, 2024 – In an era characterized by complex challenges such as geopolitical unrest, resource constraints, and the escalating impact of climate change, business leaders are in dire need of robust tools to navigate uncertainty. Addressing this imperative, FM Global, a preeminent commercial property insurer, has released the 2024 update to its celebrated FM Global Resilience Index. This year's iteration arrives with significant enhancements, incorporating new factors to better reflect the evolving landscape of business risks worldwide.

For over a decade, FM Global has methodically refined this interactive index to encapsulate a more sophisticated understanding of business resilience. The 2024 release introduces criteria like educational quality, inflation rates, internet penetration, water stress levels, greenhouse gas emissions, and the degree of climate change exposure. These additions are crucial for modern enterprises as they map out strategic choices concerning site selection, the architecture of supply chains, and initiatives for loss prevention.

"Today's business ecosystem demands acute insights if organizations are to flourish amidst incessant change," conveyed Chris Majka, Staff Vice President of Data Visualization and Reporting at FM Global. "By augmenting the Resilience Index with these pivotal factors, we provide enterprises valuable perspectives to inform their long-term strategic moves that underpin operational success and sustained performance."

The Definitive Listing of Global Business Environments

Topping the list in the 2024 FM Global Resilience Index is Denmark, hailed once again for maintaining its status as the most resilient business location in the world. Luxembourg, Singapore, Switzerland, Germany, Sweden, Finland, Norway, Belgium, and the central region of the United States (which the Index splits into three distinct regions for nuanced analysis) also claim their spots among the top ten bastions of business resilience.

Amalgamating quantitative data from a set of eighteen resilience factors backed by authoritative third-party sources and FM Global's extensive engineering database, the rankings paint a comprehensive picture. The data originates from an engineering force at FM Global that rigorously assesses over 100,000 business locations every year, contributing a rich vein of knowledge on global property risk.

With a user experience now empowered by AI-enhanced risk modeling, the 2024 Index offers twice the analytical depth compared to its original version in 2014. An intuitive interface now enables users to delve into individual factors, exploring specific metrics ranging from greenhouse gas mitigation efforts in Belgium and India to water conservation actions in Australia and the current political risks in Russia and Ukraine.

A Benchmark Validated by Real-World Loss Data

The practicality of the FM Global Resilience Index has been grounded and validated by concrete property-loss data. Countries ranked within the index's premier echelon of 50 demonstrate an over 30% quicker average recovery rate from property losses than their counterparts in lower-ranked nations, making a compelling case for the correlation between high resiliency scores and enhanced post-loss recovery efficiencies.

Catalog of New Resilience Factors

The eighteen evenly weighted factors defining the resilience of a nation's business environment are diverse. They encompass Macro aspects like governance, corruption control, economic viability, and social resilience alongside Physical components, which directly influence tangible assets such as property and infrastructure. The index's fresh factors include:

• Macro: Control of Corruption, Education, Energy, GHG Emissions, Health Expenditure, Inflation, Internet Usage, Logistics, Political Risk, Productivity, and Urbanization Rate
• Physical: Climate Change Exposure, Climate Risk Exposure, Climate Risk Quality, Cybersecurity, Fire Risk Quality, and Seismic Risk Exposure

Newly italicized measures in the updated index underscore FM Global's commitment to comprehensiveness, adapting its analytical focus in stride with the waves of change affecting global business terrains.

FM Global brings a venerable history nearly two centuries deep, operating as a mutual insurance company exclusively devoted to managing property risks and boosting the resilience of its policyholder-owners. The company's clientele includes an illustrious roster spanning the globe and features one out of every four Fortune 500 companies. Through collaboration with FM Global, these businesses enhance their understanding of risks and actively engage in proactive risk management and loss prevention strategies while having their assets protected by insurance.

Explore the 2024 FM Global Resilience Index

The Resilience Index is a facet of FM Global's near bicentennial mission, fostering client protection by leveraging premier research, thorough product testing, and cutting-edge loss-prevention engineering. Stakeholders interested in gaining further insights into the Index's workings and implications can access a suite of resources:

• An Executive Summary provides a synopsis of the Index’s findings.
• For answers to common inquiries, there's a Frequently Asked Questions section.
• The Methodology document elucidates the rigorous process underlying the Index's creation.

About FM Global:

Founded nearly two hundred years ago, FM Global has remained steadfast in its mission: to arm its mutual policyholders with unmatched capital, research, and engineering expertise aimed squarely at property risk management and resilience. Among its policyholder-owners are many of the planet's leading organizations, including a sizeable fraction of the Fortune 500. These partners seek FM Global's insight to deepen their grasp of potential hazards that may disrupt their operations, enabling them to make informed, cost-effective decisions that blend robust loss prevention with comprehensive insurance coverage.

Conclusion

As global commerce continues to face an evolving set of challenges, the 2024 FM Global Resilience Index emerges as an indispensable tool for business leaders. Armed with in-depth analysis, businesses are better equipped to fortify themselves against disruptive threats, plan with foresight, and champion the principles of resilience that will define the successful enterprises of tomorrow. The 2024 updates to the Index signify a quantum leap in business intelligence – one that could very well shape the strategic blueprints of global companies for years to come.

SOURCE

This groundbreaking analysis has been provided by FM Global. For more information on FM Global's services, approach, and impact on the world of risk management and insurance, visit FM Global.

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